Benefits of Supplemental Retirement Accounts

The 403 (b) and 457(b) plans allow you to set aside a portion of your salary before
federal and state income taxes are paid. This deferred salary (before-tax deductions)
is placed into an investment account of your choice. Participating in an SRA allows
you to delay payment of taxes on the money you invest and any interest that money
has earned until later- usually at retirement.

Decide how much to save (subject to the minimum and maximum deposit limitations).

Decide the type of investment vehicle to use for your deposits.

Increase, decrease, stop, or resume deposits any time you choose.

Select from a variety of settlement options upon termination. Your policy/contract
may include these options and more:

An immediate lump-sum cash settlement

An annuity settlement

Installments for a selected period

A survivor annuity

Designate a beneficiary for the death benefit related to your SRA. You also have the
right to select an installment or annuity settlement for the death benefit. If you
do not make such a selection, your beneficiary has the right to make a selection.

*Assumes federal tax bracket of 15%. Savings will be even greater for person in higher
tax brackets.

Annuity Contracts

There are two types of annuity contacts: fixed annuities and variable annuities.

The fixed annuities provide a guarantee of principal and a guaranteed rate of return.
Fixed annuities also provide for fixed periodic payments at retirement and a specific
rate of return for a certain period of time. At retirement, you can select from several
payment options, depending on the investment contract or policy you have chosen.

The variable annuities invest mainly in stocks, bonds, and money market funds and
do not have a fixed rate of return or a guarantee of principal. The amount of money
you receive at retirement or your monthly retirement payments will vary, depending
on the investment performance of the fund. This type of investment relies on growth
over a period of time to increase the value of the fund. There are no guarantees that
your account will grow; the value of your account can go up or down with the investment
performance of the fund.

Some of the companies offer a combination of both fixed and variable annuities. You
may specify the percent or amount of each deposit that is to be invested in each account.

Mutual Funds

The custodial accounts available through the mutual fund companies are very similar
to the variable annuity option described above.

The value of your account can go up or down with the investment performance of the
fund.